Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikashanik Trust Nokar Co-op Credit Society Vs ITO (ITAT Panaji)
The Ugar Sugar Works Kamgar & Dr. Shirgaokar Shaikashanik Trust Nokar Co-op Credit Society appealed against the Commissioner of Income Tax (Appeals)’s order, which upheld the Assessing Officer’s denial of their claim for exemption under Section 80P(2)(a)(i) of the Income Tax Act for the assessment year 2012-13. The AO had classified the appellant as a cooperative bank, not a cooperative society. The Income Tax Appellate Tribunal (ITAT), Panaji, heard the arguments, noting that the appellant was registered as a cooperative society under the Karnataka State Co-operative Society Act, 1959, and did not possess a banking license from the Reserve Bank of India. Citing the Supreme Court’s ruling that assessing authorities cannot dispute the registration certificate under the Cooperative Societies Act without an RBI license for banking, the ITAT concluded that the appellant remained a cooperative society. Consequently, the ITAT held that the society qualified for the exemption under Section 80P(2)(a)(i) despite earning interest income from its members, and allowed the assessee’s appeal.
FULL TEXT OF THE ORDER OF ITAT Panaji
This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals), Gulbarga (‘CIT(A)’ for short) dated 29.12.2017 for the assessment year 2012-13.
